SCOTTSDALE, Ariz.--(BUSINESS WIRE)--May 9, 2006--Capitalizing on a long-standing relationship, GE Capital Solutions, Franchise Finance funded a two-tiered deal worth $10.6 million for Restaurant Concepts, Inc. The deal leverages the equity of 11 existing Arby's units and allows Restaurant Concepts to expand its business to include Famous Dave's locations in Arizona and Nevada.
The two-part transaction provides Cedar Rapids, Iowa-based Restaurant Concepts with $6.8 million in refinancing for existing Arby's locations, with the balance used to finance the construction of two new Famous Dave's locations. Also included is a $1.5 million cash-out to assist in the development of the new Famous Dave's locations in Las Vegas.
"The primary focus of getting this financing is to obtain equity for the Famous Dave's business," says Bill Dworak, president, Restaurant Concepts. "Working with GE Capital Solutions, Franchise Finance cut our timeline in half because of their flexibility and knowledge of our business and the industry."
GE Capital Solutions, Franchise Finance used many resources to ensure the transaction funded smoothly.
"Because of the layers of this deal, it was more complicated than most, but we were able to make it work," says Allan Hauptli, account executive, GE Capital Solutions, Franchise Finance. "This is an opportunity for a customer to grow and that's just one of the many things we focus on helping franchisees do."
Having collaborated in the past, GE Capital Solutions, Franchise Finance is well-versed in the Restaurant Concepts business. In fact, more than 20 years in the restaurant industry gives GE Capital Solutions, Franchise Finance significant knowledge to help their customers.
"We recognize that we can help the customer by structuring a deal that is comfortable while at the same time meeting their needs," says Hauptli.
Dworak notes the existing relationship is helpful.
"The deal funded smoothly and the closing was painless. The biggest benefit was the relationship; GE Capital Solutions, Franchise Finance knows who we are. They are very easy to communicate with and we look forward to working with them in the future."
For GE Capital Solutions, Franchise Finance, proving adept at funding a complicated deal is a testament to the competence that decades of experience breeds. Fostering a progressive relationship with its customers, however, comes naturally.
About GE Capital Solutions, Franchise Finance
GE Capital Solutions, Franchise Finance is a leading lender for the franchise finance market via direct sales and portfolio acquisition. With more than 20 years of experience and $11 billion in served assets, we serve more than 6,000 customers and more than 20,000 property locations, primarily in the restaurant, hospitality, branded beverage, power sports, and automotive after-market industries. We offer customers access to capital with a menu of products featuring flexible structuring, including financing for acquisitions, refinancing, construction of new units, and remodels for single- and multi-unit operators/chains. More information is available at www.gefranchisefinance.com or by calling toll-free 866-GET-GEFF (438-4333).
GE Capital Solutions provides leasing, lending, and capital investment products and services to help business customers grow. It has more than $90 billion in assets, serves more than a million clients around the world, and is headquartered in Danbury, Connecticut, USA. For more on GE Capital Solutions, go to www.ge.com/capitalsolutions.
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Contacts
Arment Dietrich
Gini Dietrich, 312-787-7249
[email protected]
or
GE Capital Solutions, Franchise Finance, Scottsdale
Christine Roe, 480-563-6260
[email protected]
Stephen White